Money and Finance
- Ed Thorp Quote
“If you have a really strong conviction about your edge, then the best thing to do is sit there and take your lumps. If, however, you believe there is a reasonable chance that you might not have an edge, then you better have a safety mechanism that...
- Ed Thorp Quote
From the book Hedge Fund Market Wizards: Jack Schwager: What do you think is the biggest mistake people make in the markets? Ed Thorp: Looking to outside sources for guidance in their positions. The belief that you can watch CNBC and get useful advice...
- Ed Thorp, Jack Schwager, And The Kelly Criterion
Excerpt from Jack Schwager’s interview with Ed Thorp in the book Hedge Fund Market Wizards: The Kelly criterion is the fraction of capital to wager to maximize compounded growth of capital. Even when there is an edge, beyond some threshold, larger bets...
- Random Links
Just a bunch of random things that might be worth reading if you've never come across them: An Hour with Mr. Graham All Strategy Is Local Jeremy Grantham: July 2006 Letter, which includes Everything I Know About the Market in 15 Minutes - Or...
- This Is The Opposite Of Real Investing
Innovation in finance is designed largely to benefit those who create the complex new products, rather than those who own them. - Jack Bogle Earlier this week, I came across an article about "math nerds taking over Wall Street" and thought it must...
Money and Finance
Ed Thorp on NPR (2010)
Thanks to Lincoln for passing this along.
In 1962, Ed Thorp became every gambler's favorite mathematician when he published the first mathematically proven method for beating the dealer at blackjack.
Thorp's work revolutionized the game. But he went further: In 1967, Thorp devised a system that uses math and computers to predict the future of the stock market. His hedge funds and his personal portfolio have been profitable ever since.
Thorp and the people who use such systems have come to be known as "quants" — it's a reference to the quantitative-analysis techniques they employ — and their stories are told in Scott Patterson's new book The Quants: How a New Breed of Math Whizzes Conquered Wall Street and Nearly Destroyed It.
Thorp has taught at MIT and UCLA. Patterson writes for the Wall Street Journal. They join Terry Gross for a conversation about Patterson's new book.
- Ed Thorp Quote
“If you have a really strong conviction about your edge, then the best thing to do is sit there and take your lumps. If, however, you believe there is a reasonable chance that you might not have an edge, then you better have a safety mechanism that...
- Ed Thorp Quote
From the book Hedge Fund Market Wizards: Jack Schwager: What do you think is the biggest mistake people make in the markets? Ed Thorp: Looking to outside sources for guidance in their positions. The belief that you can watch CNBC and get useful advice...
- Ed Thorp, Jack Schwager, And The Kelly Criterion
Excerpt from Jack Schwager’s interview with Ed Thorp in the book Hedge Fund Market Wizards: The Kelly criterion is the fraction of capital to wager to maximize compounded growth of capital. Even when there is an edge, beyond some threshold, larger bets...
- Random Links
Just a bunch of random things that might be worth reading if you've never come across them: An Hour with Mr. Graham All Strategy Is Local Jeremy Grantham: July 2006 Letter, which includes Everything I Know About the Market in 15 Minutes - Or...
- This Is The Opposite Of Real Investing
Innovation in finance is designed largely to benefit those who create the complex new products, rather than those who own them. - Jack Bogle Earlier this week, I came across an article about "math nerds taking over Wall Street" and thought it must...